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23 Emotional and Cognitive Biases in Investing To Avoid

Investing biases are these irrational preferences that affect investing decisions and subsequent outcomes. They are errors in logical thinking. Not all investing biases are necessarily negative, but those are usually the ones we want to focus on. Biases distort our ability to make rational decisions based on objective facts and evidence.

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URL: https://www.optimizedportfolio.com/investing-biases/

Day Trading vs. Investing in Stocks

(6 days ago) What Is Investing? Investing, on the other hand, refers to buying a stock and holding it over a period of years in the hopes of long-term capital growth, building wealth over an extended period to reach a financial objective.

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Factor Investing and Factor ETFs

(2 days ago) Factor investing simply refers to consciously overweighting, or tilting, specific assets above their market weight to attempt to capture a premium (excess return) from an independent source of risk, known as a risk factor. These risk factors explain the differences in returns between diversified portfolios previously attributed to “skill.”.

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The Best Index Funds for 2021 for the Passive Investor

(7 days ago) Investing in real estate can add some extra diversification to a stock portfolio with its low correlation to the stock market. This is done with Real Estate Investment Trusts, or REITs for short. The Vanguard Real Estate Index Fund is the most popular REIT fund and seeks to track the MSCI US Investable Market Real Estate 25/50 Index.

Category:  Invest,  Real estate,  Stock market Go Now

How To Beat the Market Using Leverage and Index Investing

(8 days ago) An example of a leveraged ETF is the Ultra S&P500 (SSO) from ProShares, seeking to deliver 200% of the daily returns of the S&P 500 Index. An example of a margin loan is the relatively cheap margin from M1 Finance known as M1 Borrow. An investment of $100 in SSO gets you $200 of exposure. If the S&P 500 goes up by 10%, SSO goes up by [roughly

Category:  Invest,  Finance Go Now

Dollar Cost Averaging vs. Lump Sum Investing (DCA vs. LSI)

(9 days ago) On average, investing today is better than waiting until tomorrow. Vanguard’s conclusion regarding DCA vs. LSI was as follows: “…the prudent action is investing the lump sum immediately to gain exposure to the markets as soon as possible. But if the investor is primarily concerned with minimizing downside risk and potential feelings of

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What Is the Stock Market

(8 days ago) Investing in the stock market is easier than you might think. You can obviously join a full-service broker who provides professional advice or pay a fee-based financial advisor, but I’m always trying to fight for lowering the physical, mental, and financial barriers to investing

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How To Invest Your HSA (Health Savings Account)

(9 days ago) Disclaimer: While I love diving into investing-related data and playing around with backtests, I am in no way a certified expert. I have no formal financial education. I am not a financial advisor, portfolio manager, or accountant. This is not financial advice, investing advice, or tax advice.

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How to Buy Amazon Stock with $100

(2 days ago) Fractional shares allow you to use M1’s account minimum deposit ($100) to buy roughly 1/33 of a share of Amazon stock. After the initial $100 deposit when opening a new account, you can buy new shares of stock in the future whenever your cash balance reaches at least $25. Opening an account with a brokerage will only take about 10 minutes.

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13 Best Index Funds for Young Investors (6 From Vanguard)

(7 days ago) Investing in broad indexes drastically lowers portfolio volatility and risk, especially when incorporating multiple asset types. I delved into the nature of index funds and index investing as a strategy in more detail here if you’re interested. Below we’ll explore some of the best index funds for young investors for long-term growth.

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The 9 Best Leveraged ETFs To Enhance Portfolio Exposure (2021)

(5 days ago) This is not financial advice, investing advice, or tax advice. The information on this website is for informational and recreational purposes only. Investment products discussed (ETFs, mutual funds, etc.) are for illustrative purposes only. It is not a recommendation to buy, sell, or otherwise transact in any of the products mentioned.

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How to Invest in Commodities With a Single ETF

(7 days ago) Historically, investing in Commodities required experience, time, and effort in using futures contracts. Nowadays, we can simply buy shares of an ETF (Exchange Traded Fund) just like shares of a stock. The most popular ETF to invest in Commodities is the Invesco Optimum Yield Diversified Commodity Strategy No K-1 ETF. Its ticker symbol is PDBC.

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Motif Investing Alternatives

(3 days ago) Motif Investing Closing Announcement. Motif Investing announced in an email to retail investors on April 17 that it would suddenly be closing after 10 years, a shock to members of Motif.

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Why and How To Buy Bonds Online: A Guide for Beginners

(2 days ago) But by investing solely in bonds, you’d miss out on the historically-higher returns of stocks. Conveniently, bonds and stocks are uncorrelated, meaning when stocks zig, bonds usually zag, and vice versa. This is why bonds are the primary diversifier of choice alongside stocks. In this way, bonds also act as insurance or a “hedge” against

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The 9 Best International ETFs (6 From Vanguard) of 2021

(9 days ago) This is not financial advice, investing advice, or tax advice. The information on this website is for informational and recreational purposes only. Investment products discussed (ETFs, mutual funds, etc.) are for illustrative purposes only. It is not a recommendation to buy, sell, or otherwise transact in any of the products mentioned.

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The 7 Best Inflation Hedge Assets and ETFs for 2021

(5 days ago) This is not financial advice, investing advice, or tax advice. The information on this website is for informational and recreational purposes only. Investment products discussed (ETFs, mutual funds, etc.) are for illustrative purposes only. It is not a recommendation to buy, sell, or otherwise transact in any of the products mentioned.

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JL Collins Simple Path To Wealth Portfolio Review & ETFs

(8 days ago) JL Collins advocates for frugality, planning, diversification, and low-fee investing as “a simple path to wealth.”. Can’t argue with that. Long-term approaches and lazy portfolios like these are admittedly boring, but that doesn’t have to be a bad thing. Bogle espoused the “majesty of simplicity.”.

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Golden Butterfly Portfolio Review and M1 Finance ETF Pie

(2 days ago) Tyler maintains that the Golden Butterfly Portfolio “goes against conventional investing wisdom.” I wouldn’t really go that far. We know that Small Cap Value has historically paid a risk premium and gets us exposure to the Size and Value factors, small- and mid-caps have beaten large-caps historically, short-term treasury bonds are a cash equivalent, and long-term treasury bonds offer

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The 3 Best Transportation ETFs To Watch in 2021

(5 days ago) This is not financial advice, investing advice, or tax advice. The information on this website is for informational and recreational purposes only. Investment products discussed (ETFs, mutual funds, etc.) are for illustrative purposes only. It is not a recommendation to buy, sell, or otherwise transact in any of the products mentioned.

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Lazy Portfolios and Their ETF Pies for M1 Finance

(1 days ago) Lazy portfolios are usually simple, diversified collections of low-cost index funds; no active management, market timing, or stock picking here. Jack Bogle, founder of Vanguard and considered the father of index investing, advocated for the “majesty of simplicity.”. In this case, “lazy” isn’t a bad thing. Lazy portfolios arguably take

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The Scott Burns Couch Potato Portfolio Review and ETF Pie

(8 days ago) The Scott Burns Couch Potato Portfolio Review and ETF Pie. Financially reviewed by Patrick Flood, CFA. The Couch Potato Portfolio was created by investing writer Scott Burns. Here we’ll take a look at its components, historical performance, and the best ETF’s to use in its execution.

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The Scott Burns Margarita Portfolio Review and ETF Pie

(5 days ago) Disclaimer: While I love diving into investing-related data and playing around with backtests, I am in no way a certified expert. I have no formal financial education. I am not a financial advisor, portfolio manager, or accountant. This is not financial advice, investing advice, or tax advice.

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Ben Felix Model Portfolio Review & M1 Finance ETF Pie

(1 days ago) Ben Felix Model Portfolio ETF Pie for M1 Finance. M1 Finance is a great choice of broker to implement the Ben Felix Model Portfolio because it makes regular rebalancing seamless and easy, has zero transaction fees, and incorporates dynamic rebalancing for new deposits. I wrote a comprehensive review of M1 Finance here.

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M1 Finance vs. Betterment Brokerage Comparison [2021 Review]

(Just Now) M1 Finance vs. Betterment – Summary and Conclusion. M1 Finance and Betterment are both built for passive, long-term, buy-and-hold investing. M1 Finance offers free investing; plain and simple. Betterment carries a 0.25% fee for their basic plan and a 0.40% fee for their Premium plan.

Category:  Invest,  Finance Go Now

The Talmud Portfolio Review and ETF Pie for M1 Finance

(2 days ago) Who is Roger Gibson? As the name suggests, the Talmud Portfolio was created by financial adviser Roger Gibson. In a 1998 paper titled Asset Allocation and the Rewards of Multiple-Asset-Class Investing, Gibson drew from the foundational work of Harry Markowitz, the father of modern portfolio theory, to show how a combination of volatile, uncorrelated assets could produce higher …

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About Optimized Portfolio

(1 days ago) About. Having a math background and a curious, quantitative mind in general, I’ve always naturally tried to analyze and “optimize” everything – health, fitness, sleep, work, finance, investing, decisions, cooking, websites, you name it. So I figured I’d create a blog to help others do the same for investing and personal finance.

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Gyroscopic Desert Portfolio Review and ETF Pie for M1 Finance

(2 days ago) What is the Gyroscopic Investing Desert Portfolio? Not far off from the Permanent Portfolio, the Desert Portfolio is a 3-asset portfolio comprised of stocks, treasury bonds, and gold.Its 60% intermediate bond holding is functionally similar to the Permanent Portfolio’s barbell bond approach.

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M1 Finance vs. Merrill Edge Brokerage Comparison (2021)

(2 days ago) M1 Finance will be easier to navigate than Merrill Edge for novice investors,. If you don’t need account types like Solo 401(k), SIMPLE IRA, and 529, and if you want access to fractional shares, cheap margin, free automatic rebalancing, M1 Finance is …

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